An alternative fuel is any material or substance that is not derived from petroleum that can be used as a fuel. Interest in alternative fuels has focused on transportation fuels, since 70% of petroleum is consumed by the transportation sector.

Vehicles can run on many kinds of fuels that are not made from petroleum. The U.S. Department of Energy (DOE) officially recognizes alcohols, compressed natural gas (CNG), electricity (stored in batteries or fuel cells), hydrogen, liquefied natural gas (LNG), and liquefied petroleum gas LPG or propane) as alternative fuels. Other alternative fuels include biodiesel, wood, vegetable oil, biomass, and peanut oil.

In 2000, there were about eight million vehicles around the world that ran on alternative fuels, a figure that speaks to the increasing popularity of alternative fuels. There is growing social interest as well as economic and political impetus -- due to concerns over sustainability, energy security, environmental impacts, economics relating to oil, and overall geopolitical apprehensions -- for development of alternative fuel sources principally due to the fact that conventional fuels contribute directly to the global warming. Another issue relates to escalating costs for petroleum-derived fuels caused by severe shortages of oil in an era of growing energy consumption. In addition, the majority of the known petroleum reserves are located in the Middle East, and there is concern that worldwide fuel shortages could intensify the unrest that exists in the region, leading to further conflict.

Alternative fuel vehicles offer numerous benefits. They produce lower emissions and fewer toxic contaminants than gasoline and diesel vehicles and thus have reduced impacts on air quality, global warming, the environment, and public health. They hold promise of economic benefits. While the capital cost of purchasing or converting a vehicle to an alternative fuel may be higher than for gasoline or diesel vehicles, the cost of fuel and maintenance may be lower over the vehicleâs lifetime. Since they can usually be extracted and produced domestically, they help reduce dependence on imported oil and contribute to domestic economic growth. They are largely derived from renewable energy sources that provide greater energy efficiency and reduce dependence on finite sources of fossil fuels. In general, alternative fuels offer safety and environmental benefits compared to gasoline and diesel fuels.

However, there are barriers to the widespread adoption of AFVs. The lack of a fueling infrastructure is a major obstacle to the use of some alternative fuels. Some alternative fuels have safety risks and must be handled with caution. Hydrogenâs flammability is a major concern as it can ignite in low concentrations and leaks in transport and storage equipment could present public safety hazards. Moreover, while people are familiar with gasoline, handling alternative fuels will be new to consumers. Therefore, developers must optimize new fuel storage and delivery systems for safe everyday use, and consumers must become familiar with alternative fuelsâ properties and risks.

Hybrid electric vehicles offer an alternative to conventional petroleum or diesel powered vehicles. Hybrid electric vehicles (HEVs) fall into the advanced technology vehicle (ATV) category. They use technology other than a straight internal combustion engine, usually employing some type of battery electric technology.

This 80-page report examines the benefits and risks of various types of alternative fuel vehicles. It explains the various types of alternative fuels and their applications, and delves into the market potential and the economics each one. It looks at developments in specific countries, lists major players in the industry, and presents several comprehensive case studies. It presents a thorough review of the technological developments and assessment of the market opportunities that exist for alternative fuel vehicles.

Bharatbook.com, a leading information aggregator, facilitates and supports the business information needs for market research , corporate / strategic planning by providing the latest information in the form of reports, journals, magazines and databases on varied industries like automotive, oil and gas, shipping, textiles, pharmaceuticals, energy, banking, finance, insurance, risk management, country intelligence, consumer & durable goods, chemical and more. With over 90,000 reports, you can get instant access and insights on the studies in your areas of interest. For more information, call at +91 22 27578668 / 27579438 or email info@bharatbook.com or our website http://www.bharatbook.com